How to bid on a property at auction

Auctions can be stressful, especially for first-timers with no experience in the dog-eat-dog world of real estate. Follow these tips to come out on top when the hammer falls.

TIP #1 Organise your finances well in advance for a realistic idea of what you’ve got to spend. Meet with a mortgage broker or lender to get pre-approval on a home loan.

TIP #2 Set a limit based on your financial situation as well as your research into what similar properties in the same area have gone for. Know how much you’re prepared to push it: you don’t want to miss out on your dream house for $2,000, but $20,000 is a different story.

TIP #3 State each bid clearly and with confidence. Pay attention to how the increments are rising – if you can, it’s best to bid aggressively from the get-go to scare people off.

TIP #4 Auctions can be a psychological battlefield, so dress to impress. There’s no harm in putting on your best outfit or parking an expensive ride nearby to show who’s boss.